During the process of your motorcycle accident personal injury claim, you will be dealing a significant time with insurers and their uncommon motorcycle insurance terms. It is common for any person to feel confused and overwhelmed by the Insurance Terms. But Motorcyclist Attorney’s got your back.
Your motorcycle accident attorneys have prepared this Glossary of Insurance Terms. Once you read this, you will be able to understand the most common words you will be using when you make your motorcycle accident personal injury claim.
Actual Cash Value: The fair market value of property; commonly determined by the replacement cost minus depreciation.
Adjuster: A person who examines a claim and determines how much money the insurance company should pay for damages. Also Claim Examiner or Auto Damage Adjuster
Appraisal: Process that determines the value of property or the extent of damage. It is usually performed by an impartial expert.
Assured: A person who has an insurance policy. Also insured or policyholder.
At-Fault: The party legally liable for the damages in an accident.
Auto Damage Adjuster: The person who is responsible for writing the repair estimate for your vehicle. They will also answer any questions you have about the repair process, getting a rental car, or your total loss settlement.
Auto Insurance: Auto Insurance provides protection from losses resulting from owning and operating an auto. The insurance covers losses to the insured’s property and losses for which the insured is liable as a result of owning or operating an auto.
Bodily Injury: An injury sustained by a person.
Certificate of Satisfaction: A form signed by the insured when he or she recovers the car from the repairer. It approves his or her satisfaction with the vehicle operations, appearance, and visible quality of the repairs.
Claim: Any request or demand for payment under the terms of the insurance policy.
Claimant: Individual or entity making a claim.
Claim Examiner: The person who is responsible for investigating and setting a claim.
Comparative Negligence: A legal term that allows claimants to recover a portion of their damages even when they are partially liable for the accident. Each party’s negligence is compared to the other’s and a claimant’s recovery can be reduced by the percentage of his or her own negligence.
Condition: Section of an insurance contract which outlines the duties and responsibilities of both the insured and the insurance company.
Coverage: Protection and benefits provided in an insurance contract.
Damage: Loss or harm to a person or a property
Damages: Money that one party is legally obligated to pay to another party.
Declarations: Section of your policy that includes your name and address; the property that is being insured, its location and description; the policy period; the amount of insurance coverage and the applicable premiums.
Estimate: An assessment of the cost to repair your damaged property.
Exclusion: Restriction in your insurance policy that limits and may exclude coverage for certain perils.
First Party: Term used to refer to an insured.
First Party Claims: A claim for damage, loss or injury made by an insured.
Grey Market Vehicle: A vehicle that has been imported to the U.S. outside the manufacturer’s distribution channels and could possibly fail to adhere to U.S. safety regulations.
Hazard: Anything that increases the chance of an accident occurring.
Indemnification: To give compensation for a loss with the intent to restore an individual or entity to the approximate financial position prior to the loss.
Indemnity: Compensation for a loss intended to restore an individual or entity to the approximate financial position prior to the loss.
Inspection: The verification of a vehicle’s physical condition.
Insurance: The system in which groups of people who have similar chances of suffering a loss transfer their risk of loss to an insurer who pools the risk of many people together. In exchange for payment of a premium, the insurer promises to reimburse the person for their covered losses.
Insurance Fraud: The act of falsifying or exaggerating the facts of an accident to an insurance company to obtain payment that would not otherwise be made. Common types of insurance fraud are staged accidents, exaggerated injuries, and inflated medical bills.
Insured: A person or organization covered by an insurance policy.
Legal Liability: Liability imposed by law. This is different from a liability imposed by an agreement or contract.
Liability: Any legally enforceable obligation or responsibility for the injury or damage suffered by another person.
Liability Insurance: Insurance that provides protection from claims arising from injuries or damage to other people or property.
Liability Investigation: To gather information with the intention of determining the cause of an accident.
Lien: A claim, charge or encumbrance on property as a security for the payment of a debt.
Lienholder: A person or organization with a financial interest in a property to the amount of money borrowed or still owed on the property.
Loss: Any measurable dollar cost of damage and/or injury suffered by a person.
Material Damage: All property-related damage losses covered by an insurance policy. These damages include: Property Damage (PD), Comprehensive Damage (COMP), Collision Damage (COLL), Fire/Theft Combined Additional Coverage (FTCA), Rental Reimbursement (RR), or Uninsured Motorist Property Damage (UMPD).
Misrepresentation: To make written or verbal statements that are untrue or misleading with the clear intention to deceive someone.
Motor Vehicle Report (MVR): A report provided by the agency that issues your driver’s license. It lists the accidents and vmvriolations that appear on your driving record and is used to verify information provided by insurance applicants and policyholders.
Motorcycle Insurance: Protection and coverage provided for damage and physical harm caused by an accident involving a motorcycle.
Negligence: The failure to take reasonable care that leads to someone getting injured or their property getting damage.
Peril: A danger or hazard that causes a loss, this can include a car collision, a fire, among others.
Personal Property: Property that is not land or connected to land (real estate), such as furniture or jewelry.
Physical Damage: Damage to property.
Policy: A contract between you and the insurance company.
Policyholder: The person or entity listed on the policy declarations page.
Premium: Money charged for the insurance coverage reflecting expectation of loss.
Proof of Loss: A document that states the extent of the claim. It may be requested according to the conditions of the policy.
Proximate Cause: The event that started the unintended events that led up to the loss.
Registered Keeper: For insurance purposes, the registered keeper is the person who looks after a motorcycle, whether he or she is the vehicle’s owner or not.
Reinspection: A review of an estimate or appraisal done by an adjuster during or after repairs to a vehicle. This is done to make sure that the work required in an estimate or appraisal is being completed by the body shop.
Release: A legally binding contract stating that all obligations past, present or future arising from a particular accident or occurrence have been fulfilled.
Rider: Someone who operates or will operate the insured motorcycle.
Risk: The chance of suffering a loss.
Salvage: Property which is taken over by the insurance company after the payment of a claim.
SR-22, Certificate of Financial Responsability (CFR): An SR-22 (CFR) is a document that verifies that an individual is maintaining auto insurance liability coverage. This document is mandated by the state, and if a person needs one, he or she will be notified by the Motor Vehicle Department.
Third Party: Person or entity not party to an agreement but with an interest in said agreement.
Third Party Claim: A claim for injury or damage to property of a third party alleged to have been caused by the insured.
Tort: A private or civil wrong or injury, other than breach of contract, which violates a person’s legally protected right(s), and for which the law may permit a remedy in the form of money damages.
Total Loss: Property that has sustained damage so extensive that is not reasonable to repair it. A vehicle is considered a total loss if it cannot be repaired safely, if repairing the vehicle is not economically practical, or if state regulations require us to consider it as such.
Umbrella Insurance: Extra insurance that provides more protection in case an occurrence happens and your insurance doesn’t cover everything. It provides coverage that may be excluded by other liability policies.
Underwriting: The process an insurer goes through to determine whether or not it will provide coverage for an applicant.
Warranty: A written guarantee of the integrity of a product and of the manufacturer’s responsibility for the repair or replacement of defective parts.